A N N U a L R E P O
Total Page：16
File Type：pdf, Size：1020Kb
CIVIL AVIATION ADMINISTRATION FINLAND ANNUAL REPORT 94 CONTENTS 2 REPORT OF THE DIRECTOR GENERAL 5 CAA´S BUSINESS IDEA 5 CAA´S LINE OF ACTIVITIES AND PRIMARY TASKS 6 HIGHLIGHTS 7 REPORT OF THE BOARD 7 SERVICE, OPERATIONAL AND PROFIT TARGETS 8 DEMAND FOR AIR TRANSPORT 13 DEVELOPMENT OF AVIATION SERVICES AND BUSINESS ACTIVITIES 13 Passenger Services 15 Air Navigation Services 16 Manoeuvring Area and Ground Traffic Services 17 INTERNATIONAL AVIATION POLICY 18 ENVIRONMENTAL ISSUES 18 PERSONNEL 19 PRODUCTIVITY 23 ECONOMIC RESULT 23 Pricing Policy 23 Economic Result 25 Investments 25 Financing 27 Income Statement 28 Balance Sheet 29 Financing Statement 30 Basis for Financial Statement 34 Proposal on the Use of the Profit 35 Audit Report 37 REGULATORY FUNCTIONS 37 IMPACTS OF EU MEMBERSHIP Editor Irmeli Paavola 37 AVIATION REGULATIONS Text Matti Koskivaara Lay-out and graphic design Päivi Vainionpää 37 REGULATORY CONTROL Drawings Risto Eskelinen 37 RENEWAL OF AVIATION ACT Photograph Pietari Vanhala English text Anna Lauttamus-Kauppila 38 FLIGHT SAFETY REPORT OF THE DIRECTOR GENERAL Finally, after three difficult years of deep economic recession, gross production in Finland showed a marked upturn of 4 per cent last year. The volume of gross production was, nevertheless, 8 per cent low- er than in the period preceding the recession. Since the development of gross national production and that of air transport go hand in hand, also the vol- ume of air traffic enjoyed a considerable boost last year. The Economy of Scales principle plays a sig- nificant role in the operation and maintenance of the large number of small airports and the air navi- gation system of Finland: the positive development of air transport stabilised the economy of the Civil Aviation Administration in the desired way. Following the favourable development of Finn- ish national economy, the number of air passengers began to grow in a distinct way in July 1994, result- ing in a 5 per cent annual growth at the end of the year. Commercial air traffic operations rose by 1 per cent. It seems that the trend will continue in 1995 with an 8-9 per cent annual increase. Such a posi- tive development requires, however, undisturbed growth of the Finnish national economy as the de- velopment of the different sectors of air transport is closely linked to that of the country’s economy. Demand for international air traffic services rose by 8.5 per cent and for domestic traffic by 2 per cent. International business travel in general as well as holiday tours from central Europe to Finland showed particularly strong increase while leisure travel from Finland grew very little. The trends of these three sectors of air transport illustrate the duality of the Finnish economic development in a pertinent way: the competitiveness of the export industry and the demand for export products will remain on a high level whereas demand in the Finnish home market and the investment flow are quite modest. In addi- tion, the household sector in Finland is still rather depressed although gradually reviving. 2 In 1994, as a consequence of the increased de- raising the service level of our main airport, Helsin- mand for air transport services as well as of certain ki-Vantaa. The investment level of the CAA is still rationalization measures, the economic develop- quite high and the improvement programme, which ment of the CAA could be stabilised and even turned consciously takes advantage of the low building slightly profitable. When the 1994 economic result costs, will be continued for the next two years at is calculated on the same principle as that of 1993 least. More and more of new type of investments, (FIM -1.3 million) the comparable result for last year e.g commercial services well-suited to airport envi- is FIM +30 million. This clearly exceeds the profit ronment, have been added to the programme. For target of FIM 1 million set by the Council of State. instance, the middle terminal under construction at The positive economic result enabled the CAA to Helsinki-Vantaa Airport will be financed with prof- take account of holiday-pay liabilities in full as well its from the new commercial services and hence as extra depreciation of obsolete property during there will be no pressure on raising air traffic charg- the latest property inventory. After these accounting es on account of the investment. Simultaneously, arrangements, employed in 1994 only, and with the venture will markedly improve the basic servic- profits from the sale of property, the economic re- es offered to air carriers and passengers. sults of the CAA Group and the CAA show a profit of The focus of the CAA investment programme FIM 18.5 million and FIM 22.9 million respectively. will lie, also in the coming years, on the develop- This result may be regarded as satisfactory, at any ment of Helsinki-Vantaa Airport as well as on the rate, especially when taking into consideration that improvement of the air navigation system. An ultra- the level of air traffic charges is, on average, lower modern ATM system, which conforms to European in Finland than in the other Nordic countries or the air navigation policy, is being built in order to har- rest of Europe. Furthermore, at our small airports monise the numerous air navigation systems in use the advantages to be gained from the Economy of today. The new system will be operational in Fin- Scales principle are essentially more modest than in land in the beginning of 1997. Helsinki-Vantaa Air- many other countries. port middle terminal with flexible domestic-inter- The turnover of the CAA grew by 7 per cent out national transfers and a greater variety of commer- of which a raise in rents, fees and charges account- cial facilities will be completed in June 1996. In ed for 4 per cent. The running costs increased, with- addition, the commencement of the second phase out taking account of the above mentioned balanc- of the terminal complex, destined for serving intra- ing arrangements, by 4.4 per cent. Since the appar- EU traffic, is being considered seriously. As EU-traf- ently notable rise in the operating costs can be ex- fic composes the most significant part, nearly 70 plained partly by the holiday-pay cuts in 1993 and per cent, of Finland’s international air traffic also in partly by the new unemployment insurance fee in- the years to come, its smooth and unrestricted han- troduced in 1994, the volume of expenditure grew, dling will prove a major competition factor to our in actual fact, hardly at all. Due to our investment country. On the other hand, encouraging the ex- programme depreciation measures increased some- pansion of intercontinental gateway traffic, which what. will also gain from well-thought-out terminal ar- The financial position of the CAA remained rangements, is another key element in the Finnish good in 1994. Investments which totalled nearly air traffic strategy. FIM 193 million could almost entirely be funded The CAA’s principal task is to maintain, operate with own income. During 1994, the CAA invest- and develop the Finnish airport network. The CAA ment programme was deliberately slowed down in has been functioning as a State Enterprise for four order that the investment peak in 1995 could be years now. During this time 12 Finnish airports, out carried out in full. The greatest effort was put into of a total of 21 offering scheduled services, have 3 undergone modernisation and expansion and an- are now free from restrictions in the EAA countries other three are currently being upgraded. At the for airlines meeting the agreed technical and eco- moment, there are only two CAA airports in press- nomic requirements. Now that our national econo- ing need of redevelopment. In a country such as my has begun to recover, it is fair to expect that the Finland where commercial and industrial centres offer of air services will continue to become more are few and far between the airports form a uniform varied than before. infrastructure supporting the country’s regional Because of the adverse economic situation in structure. Hence it is our policy to develop the air- Finland, the 1993 CAA decision to liberalize the ports as a network also in the future. As a result of domestic market for Finnish airlines has had little the fairly modest air traffic volumes in Finland, Hel- significance in practice so far. Nevertheless, domes- sinki-Vantaa Airport is the only Finnish airport, de- tic air traffic in Finland is in need of more competi- spite the recently liberalized air traffic rights in the tion and wider diversity. Our dense network of air- domestic market, with the possibility of creating a ports allows enhancing fast passenger traffic be- significant international route network. Given the tween the most important commercial and industri- regional structure and traffic policy in Finland, the al centres in Finland without expensive investments other end of any domestic air service route is Hel- in new routes. When the marked unfairness in the sinki-Vantaa Airport almost without exception. It is competitive situation between the different modes not, however, the CAA’s intention to restrict other of transport has been corrected especially with re- kind of development, on the contrary, our tariff and gard to the pricing policy of traffic infrastructure, permit policy aim at furthering diversification of of- domestic air traffic will undoubtedly expand con- fer. siderably. Thanks to the flexibility of air traffic and the The outlook for 1995 is fairly optimistic. There is progressiveness of air traffic technology it is possi- no pressure on major raises in the air traffic charges ble to enhance long-haul traffic connections with- and, moreover, the infrastructure is in good condi- out investments in new air service routes.